Startup India Tax Advisory

Startup Subsidy & Tax Benefit
Advisory for Indian Founders

From DPIIT recognition to income tax holidays, angel tax exemption, and employment-linked deductions — we help founders claim every government incentive they are legally entitled to, backed by precise documentation and end-to-end filing support.

DPIIT Filing

Specialist Documentation

IMB Applications

80-IAC Tax Holiday

Pan-India

Remote-Friendly Service

Step 1 · Foundation

DPIIT Startup Recognition

DPIIT (Department for Promotion of Industry and Internal Trade) Startup Recognition is the official certification under the Startup India initiative — and the mandatory first step before your company can apply for the Section 80-IAC tax holiday, Angel Tax exemption, or any other government startup benefit.

We prepare a compelling, compliant business write-up that clearly demonstrates innovation and scalability to the reviewing authority, handle the complete Startup India portal filing, and follow up until your recognition certificate is issued.

Eligibility

  • • Private Limited Company, LLP, or Registered Partnership
  • • Incorporated within the eligible age window
  • • Annual turnover under ₹100 crore
  • • Working on innovation or a scalable business model
  • • Not formed by splitting up an existing business

Key Benefits

  • • Gateway to 80-IAC tax holiday & angel tax relief
  • • Self-certification under labour & environment laws
  • • Fast-track patent examination, up to 80% fee rebate
  • • Easier public procurement participation
  • • Faster winding-up under IBC fast-track process

How TaxGyany Helps

Eligibility screening, write-up drafting, portal filing, and query resolution — handled end-to-end.

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Eligibility

  • • DPIIT-recognized Pvt Ltd Company or LLP
  • • Incorporated within the eligible window
  • • Turnover under ₹100 crore in the claim year
  • • Certified as an "eligible business" by the IMB

Key Benefits

  • • 100% deduction on profits & gains
  • • Any 3 consecutive years out of first 10
  • • Choose the years with your strongest profit
  • • Major cash flow relief during scale-up

How TaxGyany Helps

IMB Form 1 preparation, financial modeling to pick your optimal 3-year window, and end-to-end submission.

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Step 2 · Section 80-IAC

100% Income Tax Holiday for 3 Years

Once DPIIT-recognized, eligible startups can apply to the Inter-Ministerial Board (IMB) for approval under Section 80-IAC of the Income Tax Act — unlocking a 100% deduction of profits and gains for any three consecutive assessment years out of their first ten years of incorporation.

The real advantage is choice: you decide which three years to claim, so we work with your financial projections to time the deduction against your most profitable years — maximising the actual tax saved rather than just ticking a compliance box.

Step 3 · Fundraising

Angel Tax Exemption for Investors

"Angel Tax" refers to Section 56(2)(viib) of the Income Tax Act, under which share premium received by a closely-held company can be taxed as income if it exceeds fair market value. This provision — and the relief available against it — has evolved significantly in recent years, and its impact on your funding round depends on your company structure, investor category, and the timing of the investment.

We evaluate your specific fundraise against the current provisions, prepare fair market value valuation reports under Rule 11UA, manage DPIIT exemption filings where applicable, and coordinate investor-side declarations so a funding round never gets held up by an avoidable tax notice.

What We Review

  • • DPIIT recognition status & exemption eligibility
  • • Share valuation vs. fair market value (Rule 11UA)
  • • Investor category & declaration requirements
  • • Structuring of the funding round & documentation

Why It Matters

  • • Avoid unexpected tax demands on your raise
  • • Keep investors confident in clean paperwork
  • • Prevent scrutiny delays during due diligence
  • • Stay aligned with the latest CBDT provisions

How TaxGyany Helps

Case-specific assessment, valuation reports, exemption filings, and investor coordination.

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Eligibility

  • • Business liable to tax audit u/s 44AB
  • • New employees earning ≤ ₹25,000/month
  • • Minimum 240 days employed in the year
  • • Enrolled in EPF, paid via bank transfer

Key Benefits

  • • Extra 30% deduction on new employee cost
  • • Claimable for 3 consecutive years
  • • Rewards you directly for team growth
  • • Stacks with other startup deductions

How TaxGyany Helps

Employee eligibility mapping, additional-cost computation, and Form 10DA CA certification.

Claim This Deduction
Step 4 · Section 80JJAA

Save Tax While You Hire

Section 80JJAA rewards businesses for creating jobs. Any company subject to a tax audit — startups included — can claim an additional deduction of 30% of the salary paid to new eligible employees, for three consecutive assessment years, on top of the normal salary expense already claimed.

As you scale your team, this deduction compounds quickly. We map every new hire against the eligibility conditions, compute the additional employee cost accurately, and prepare the mandatory Chartered Accountant certificate (Form 10DA) so the claim holds up during assessment.

Step 5 · Early-Stage Capital

Startup Seed Fund Application Support

The Startup India Seed Fund Scheme (SISFS) provides early-stage financial assistance to DPIIT-recognized startups for proof of concept, prototype development, product trials, and market entry — disbursed through DPIIT-approved incubators across the country.

We prepare and file a complete, error-free application on your behalf — business plan, financials, and supporting documents aligned to what incubators actually evaluate — and help you identify and apply to the incubators best suited to your sector and stage.

Eligibility

  • • DPIIT-recognized startup
  • • Incorporated within the eligible age window
  • • Indian promoters holding at least 51% equity
  • • Idea with genuine scope for a working prototype or market launch

What Seed Funding Covers

  • • Proof of concept & prototype development
  • • Product trials & validation
  • • Market entry & early commercialization
  • • Disbursed as grant and/or convertible debt via incubators

Where Our Role Ends

We Handle

  • • Eligibility check & incubator shortlisting
  • • Business plan & document preparation
  • • Filing the application, complete and on time

You Handle

  • • Presenting & pitching your idea to the incubator
  • • Answering the screening committee's questions
  • • The incubator's final funding decision

No guarantee of fund approval: Our scope is limited to accurately preparing and filing your SISFS application. The pitch to the incubator's screening committee is presented by you, and the decision to approve, reject, or fund your startup rests entirely with the incubator. We do not guarantee seed fund approval or disbursal at any stage.

How TaxGyany Helps

Incubator shortlisting, business plan drafting, and a complete, on-time application filing.

File My Seed Fund Application
Simple Process

How We Get You There

1

Free Eligibility Check

We assess which benefits apply to your startup

2

Documentation

We draft write-ups, valuations & certificates

3

Filing & Follow-Up

DPIIT, IMB & Income Tax portal submissions

4

Approval Secured

You claim the benefit, we handle compliance

FAQs

Common Questions

It is the official Startup India certification and the entry point for almost every startup tax benefit — including the Section 80-IAC tax holiday and Angel Tax exemption. Without DPIIT recognition, you cannot apply for either.

A DPIIT-recognized Private Limited Company or LLP, incorporated within the eligible window, with turnover under ₹100 crore, can apply through the Inter-Ministerial Board for a 100% profit deduction across any 3 consecutive years in its first 10.

Angel Tax provisions and available exemptions have changed significantly in recent years, and applicability depends on your company structure, investor type, and funding timeline. We assess your specific case against current provisions before your round closes.

Any tax-audited business, including startups, can claim an extra 30% deduction on eligible new employee salary cost for 3 consecutive years — a direct tax reward for growing your team.

DPIIT recognition usually takes a few working days to a few weeks with complete documentation. The 80-IAC tax holiday needs a separate IMB approval afterward, which can take longer — we manage both end-to-end to minimise delays.

No. Our role is limited to preparing and filing your SISFS application accurately and on time. After filing, you personally pitch your business idea to the incubator's screening committee, and the final funding decision rests entirely with them — we do not guarantee approval or disbursal.

Ready to Claim Your Startup's Tax Benefits?

Book a free eligibility check and find out exactly which subsidies and deductions your startup qualifies for.